European hot-rolled coil market remained quiet on Tuesday December 16 amid trading standstill and looming policy updates. Some suppliers target higher prices for the first quarter delivery, Fastmarkets heard.
Leading European steelmaker ArcelorMittal was heard to be largely sold out for February delivery HRC. For March delivery, the company has raised its HRC offers by €20 per tonne to €670 per tonne base delivered (or ex-works), depending on the region, Fastmarkets heard on Tuesday.
A steelmaker from Benelux reported plans to target €650 per tonne ex-works for March delivery coils.
Price ideas from customers in Northern Europe came at €610-630 per tonne ex-works, but trading was thin lately.
“HRC prices are moving up step by step — however only due to uncertainty with new imports due to CBAM and new safeguards,” a buyer in Germany said.
“Prices [for HRC] are very fragile, there is no support from demand side; restocking will be minimal,” a second buyer said.
As a result, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was €623.54 per tonne on Tuesday, up by €1.87 per tonne from €621.67 per tonne on Monday December 15.
The index was up by €0.73 per tonne week on week and up by €10.62 per tonne month on month.
Meanwhile, in Italy, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €613.33 per tonne on Tuesday, up by €1.66 per tonne from €611.67 per tonne on Monday.
The index was down by €0.42 per tonne week on week, but up by €12.08 per tonne month on month.
Trading was almost nonexistent in Italy, sources said. Similarly to the situation in northern Europe, local distributors held sufficient stocks, while local mills had good order books.
Offers for February delivery HRC were heard at €610-640 per tonne ex-works, depending on supplier.
Buyers estimated achievable prices at €600-620 per tonne ex-works. Although, one source pointed out that “it was no longer possible to buy HRC below €610 per tonne ex-works in Italy.”
Meanwhile, market participants said interest in new import bookings remained muted, weighed down by the EU’s upcoming CBAM requirements, the transition to a new trade regime and uncertainty over the remaining quota volumes available under the current safeguard system.
“Buying imports on CFR basis is no longer possible. Only viable option is DDP-based bookings, at least partially accounted for CBAM costs — a few big traders offer that option,” Italina buyer said. “Small buyers just withdrawn from the market because they can’t manage CBAM costs complexity,” they added.
Algerian coil was offered in Italy at €610 per tonne DDP. Offers for Turkish HRC were heard at €620 per tonne DDP in Italy.
